The initial public offering of General Insurance Corporation of India (GIC Re) was subscribed 90% or 0.9 times on Thursday.

The initial public offering (IPO) of General Insurance Corporation of India (GIC Re) was subscribed 90% or 0.9 times on Thursday, the second day of the offer , with investors bidding for 11.16 crore against a total of 12.47 crore shares on offer.

The quota for QIBs (qualified institutional buyers) was oversubscribed with wholesale investors bidding for 10.43 crore shares against the 6.22 crore shares reserved for them.

Retail investors had bid for 69.82 lakh shares against 4.35 shares reserved for them. Employees bid for 60,080 shares against 1.44 lakh shares reserved for them.GIC Re, India’s largest reinsurer is planning to raise around R11,372 crore from its IPO. The company has set a price band of Rs 855- 912 per share for its IPO and when calculated at the upper band of the issue price the company will be valued at around Rs 80,000 crore.

GIC Re’s issue will be the third biggest in the history of the domestic markets after Coal India and Reliance Power. Coal India had raised Rs 15,470 crore in October 2010 and Reliance Power raised `11,700 crore in 2008. Last month, two insurance companies, SBI Life and ICICI Lombard, had raised `8,400 crore and `5,700 crore respectively through their IPOs.

The IPO is a part of the government’s disinvestment programme. So far in FY18, the government has raised `19,758 crore through disinvestment and strategic disinvestments of public sector enterprises as against its target of Rs 72,500 crore. GIC Re’s IPO could fetch about `9,804 to the government and remaining Rs 1,568.64 crore to GIC Re.